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STATE OF NEVADA DEPARTMENT OF BUSINESS AND INDUSTRY

DIVISION OF MORTGAGE LENDING

Before the Commissioner of the Division of Mortgage Lending

In the Matter of

4D MANAGEMENT HOLDINGS INC Mortgage Broker License No UNL

and

4D COMPANIES LLC Mortgage Broker License No UNL

and

JOSEPH WAGNER Mortgage Broker License No UNL

Respondents

) ) ) ) Order No 2018-011 ) ) Case No 2018-011 ) )

)

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ORDER TO CEASE AND DESIST ORDER IMPOSING AN ADMINISTRATIVE FINE AND INVESTIGATIVE COSTS

AND NOTICE OF OPPORTUNITY FOR ADMINISTRATIVE HEARING

Jssued andered This 0 day of ~u~2019

By Cathy Sheehy Commissioner

I ORDER TO CEASE AND DESIST AND

ORDER IMPOSING AN ADMINISTRATIVE FINE AND INVESTIGATIVE COSTS

The Commissioner of the State of Nevada Department of Business and Industry Division of

Mortgage Lending (the Commissioner) having been statutorily charged with the responsibility and

authority to administer and enforce Chapter 645B of the Nevada Revised Statutes 645B010 et seq

(the Statute) and Chapter 645B of the Nevada Administrative Code NAC 645B001 et seq (the

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Regulation) ( collectively the Act) governing the licensing and conduct of mortgage brokers and

mortgage agents doing business in the State of Nevada and

The Commissioner having been vested with general supervisory power and control over all

mortgage brokers and mortgage agents doing business in the State of Nevada pursuant to the Statute

and

The Commissioner having been further vested with broad authority to conduct investigations to

determine whether any person is violating or has violated any provision of the Act and

The Division of Mortgage Lending (the Division) having received information indicating that

4D MANAGEMENT HOLDINGS INC (4DMH) 4D COMPANIES LLC (4D COMPANIES)

and JOSEPH WAGNER (WAGNER) ( collectively the RESPONDENTS) are or were engaged in

activity requiring licensure as a mortgage broker under the Statute and

The Division having received a complaint against 4DMH and WAGNER on or about August 10

2017 and commenced an investigation pursuant to NRS 645B060(2)(c) and determined from that

investigation that RESPONDENTS were engaged in activity requiring licensure as a mortgage broker

under the Statute and

The Division staff having reported the results of its investigation to the Commissioner and

The Commissioner having reviewed the results of the investigation makes the following

FINDINGS OF FACT and CONCLUSIONS OF LAW

Findings of Fact

1 Unless a person is exempt from the provisions of the Statute and has complied with the

requirements for that exemption NRS 645B900 prohibits any person from offering or providing any of

the services of a mortgage broker or mortgage agent or otherwise engaging in carrying on or holding

himself or herself out as engaging in or carrying on the business of a mortgage broker or mortgage

agent without first obtaining a Nevada mortgage broker license or mortgage agent license pursuant to

the Statute

2 NRS 645B0127(1) defines [m]ortgage broker to include any person who directly or

indirectly does any of the following

(a) Holds himself or herself out for hire to serve as an agent for any

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person in an attempt to obtain a loan which will be secured by a lien on real

property

(b) Holds himself or herself out for hire to serve as an agent for any

person who has money to lend if the loan is or will be secured by a lien on real

property

(c) Holds himself or herself out as being able to make loans secured by

liens on real property

( d) Holds himself or herselfout as being able to buy or sell notes secured

by liens on real property or

(e) Offers for sale m this State any security which is exempt from

registration under state or federal law and purports to make investments in

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promissory notes secured by liens on real property

[Emphasis added]

3 The Divisions investigation specifically found the following

a 4DMH is an active domestic corporation that holds a Nevada business license (Entity

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No Cl9275-2003) Upon information and belief 4DMH has been conducting business in Nevada since

on or about August 8 2003 4DMH is not currently and has at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

b Based upon information and belief 4DMH conducts its business from 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 andor 6360 McLeod Drive Suite 15 Las Vegas

Nevada 89120

c As reflected in the state-business licensing records of the Nevada Secretary of State

(NSOS) WAGNER serves as the sole officer of 4DMH for which he also acts as its registered agent

at the office located on 6290 McLeod Drive Suite 110 Las Vegas Nevada WAGNER is not

currently and has at no time relevant to this matter been licensed as a mortgage broker or mortgage

agent in Nevada under the Statute

d 4D COMPANIES is an active domestic limited-liability company that holds a Nevada

business license (Entity No E0472122010-0) The NSOS identifies both the managing officer and

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resident agent of that company as 4D ENERGY LLC located at 6290 McLeod Drive Suite 110 Las

Vegas Nevada 89120 the same address from which WAGNER serves as the sole officer and resident

agent of 4DMH 4D COMPANIES LLC is not currently and at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

e 4D ENERGY LLC (4D ENERGY) is an active domestic limited-liability company

that holds a Nevada business license (Entity No E0457762010-7) The NSOS identifies both the

managing officer and resident agent of that company as 4D COMPANIES located at 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 the same address for which 4D ENERGY is represented

to serve as the managing officer and resident agent for 4D COMPANIES and the same address from

which WAGNER serves as the sole officer and resident agent of 4DMH 4D ENERGY is not currently

and at no time relevant to this matter been licensed as a mortgage broker in Nevada under the Statute

f On December 9 2015 following conclusion of a previous investigation conducted by

the Division concerning 4DMHS and WAGNERS alleged private-money lending and seller carry-

back financing lending activities concerning the purchase of properties owned by 4DMH andor

WAGNER as secured by Nevada real property the Divisions then-existing Chief ComplianceAudit

Investigator issued a Letter of Caution (LOC) to 4DMH and WAGNER which constituted neither

formal discipline against 4DMH or against WAGNER individually The LOC explained that while the

Division found that their unlicensed private-money lending activities violated NRS 6458900 as well as

the corresponding prohibition concerning mortgage banking activities (NRS 645E900) based upon the

Divisions understanding that 4DMH and WAGNER had chosen to use a specified Nevada-licensed

broker to facilitate their lending activities in the future the Division had determined to close the matter

At the same time however instructing 4DMH and WAGNER to become familiar with the provisions of

the applicable law prior to engaging in the making or arranging of mortgage loans secured by Nevada

real property the LOC stressed that if the Division learned that they continued to offer or provide

financing for Nevada residential real property in the absence of proper licensure or exemption from

such requirement the Division may reopen the matter and pursue formal administrative disciplinary

proceedings

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g Following issuance of the Divisions LOC as admitted by WAGNER during the

course of the Divisions investigation subject of the instant matter 4DMH and WAGNER continued to

engage in mortgage lending activities as furthered by a business model reflecting WAGNERS purchase

of distressed residential properties under the name of 4DMH rehabilitation of the homes for sale and

performance of the services of a private-money lender in funding the acquisition of such properties by

the respective borrowers in seller-carryback transactions In particular as documented by the Division

even where the mortgage transactions related to these properties may have been in various stages of the

loan process prior to issuance of the LOC the purchase of at least nine secured residential properties in

Nevada were funded by 4DMH and WAGNER after their receipt of the LOC From approximately

December 9 2015 through at least May 4 2017 4DMH and WAGNER brokered and funded the sale of

homes situated at the following locations E Carey Avenue Las Vegas Quintearo Street Las Vegas

Daley Street North Las Vegas Mabel Road Las Vegas Cervantes Street Las Vegas Cunningham

Drive Las Vegas Plumflower Lane Las Vegas Kolanut Lane Las Vegas and Jackson Avenue Las

Vegas The Division learned that 4DMH and WAGNER subsequently assigned or sold the promissory

notes which secured the trust deeds for the properties situated on Daley Street and Kolanut Lane to

other individuals or entities

h Upon information and belief the long-term (30-year) high-interest (12-percent) rate

for the $6000000 loan financed in the 2016 seller-carryback transaction related to the Daley street

property (the deed of trust securing that loan specifically identifying 4DMH as a beneficiary whose

address is 6360 McLeod Drive 15 Las Vegas Nevada 89120) is typical of the terms of the

residential-mortgage loans brokered by and extended to various borrowers by 4DMH and WAGNER

1 On or about March 22 2018 WAGNER informed Division ComplianceAudit

Investigator DM that while he had approached the owner of the Nevada-licensed brokerage which

during the course of the Divisions prior investigation of 4DMH and WAGNER he had specifically

identified as the broker he selected to utilize when conducting all future mortgage-lending activities

explained that because that brokers fees were too high he had determined to shut down the business

He represented that he had completed only a handful of loans that were still in the funding process

following issuance of the LOC

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Regulation) ( collectively the Act) governing the licensing and conduct of mortgage brokers and

mortgage agents doing business in the State of Nevada and

The Commissioner having been vested with general supervisory power and control over all

mortgage brokers and mortgage agents doing business in the State of Nevada pursuant to the Statute

and

The Commissioner having been further vested with broad authority to conduct investigations to

determine whether any person is violating or has violated any provision of the Act and

The Division of Mortgage Lending (the Division) having received information indicating that

4D MANAGEMENT HOLDINGS INC (4DMH) 4D COMPANIES LLC (4D COMPANIES)

and JOSEPH WAGNER (WAGNER) ( collectively the RESPONDENTS) are or were engaged in

activity requiring licensure as a mortgage broker under the Statute and

The Division having received a complaint against 4DMH and WAGNER on or about August 10

2017 and commenced an investigation pursuant to NRS 645B060(2)(c) and determined from that

investigation that RESPONDENTS were engaged in activity requiring licensure as a mortgage broker

under the Statute and

The Division staff having reported the results of its investigation to the Commissioner and

The Commissioner having reviewed the results of the investigation makes the following

FINDINGS OF FACT and CONCLUSIONS OF LAW

Findings of Fact

1 Unless a person is exempt from the provisions of the Statute and has complied with the

requirements for that exemption NRS 645B900 prohibits any person from offering or providing any of

the services of a mortgage broker or mortgage agent or otherwise engaging in carrying on or holding

himself or herself out as engaging in or carrying on the business of a mortgage broker or mortgage

agent without first obtaining a Nevada mortgage broker license or mortgage agent license pursuant to

the Statute

2 NRS 645B0127(1) defines [m]ortgage broker to include any person who directly or

indirectly does any of the following

(a) Holds himself or herself out for hire to serve as an agent for any

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person in an attempt to obtain a loan which will be secured by a lien on real

property

(b) Holds himself or herself out for hire to serve as an agent for any

person who has money to lend if the loan is or will be secured by a lien on real

property

(c) Holds himself or herself out as being able to make loans secured by

liens on real property

( d) Holds himself or herselfout as being able to buy or sell notes secured

by liens on real property or

(e) Offers for sale m this State any security which is exempt from

registration under state or federal law and purports to make investments in

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promissory notes secured by liens on real property

[Emphasis added]

3 The Divisions investigation specifically found the following

a 4DMH is an active domestic corporation that holds a Nevada business license (Entity

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No Cl9275-2003) Upon information and belief 4DMH has been conducting business in Nevada since

on or about August 8 2003 4DMH is not currently and has at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

b Based upon information and belief 4DMH conducts its business from 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 andor 6360 McLeod Drive Suite 15 Las Vegas

Nevada 89120

c As reflected in the state-business licensing records of the Nevada Secretary of State

(NSOS) WAGNER serves as the sole officer of 4DMH for which he also acts as its registered agent

at the office located on 6290 McLeod Drive Suite 110 Las Vegas Nevada WAGNER is not

currently and has at no time relevant to this matter been licensed as a mortgage broker or mortgage

agent in Nevada under the Statute

d 4D COMPANIES is an active domestic limited-liability company that holds a Nevada

business license (Entity No E0472122010-0) The NSOS identifies both the managing officer and

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resident agent of that company as 4D ENERGY LLC located at 6290 McLeod Drive Suite 110 Las

Vegas Nevada 89120 the same address from which WAGNER serves as the sole officer and resident

agent of 4DMH 4D COMPANIES LLC is not currently and at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

e 4D ENERGY LLC (4D ENERGY) is an active domestic limited-liability company

that holds a Nevada business license (Entity No E0457762010-7) The NSOS identifies both the

managing officer and resident agent of that company as 4D COMPANIES located at 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 the same address for which 4D ENERGY is represented

to serve as the managing officer and resident agent for 4D COMPANIES and the same address from

which WAGNER serves as the sole officer and resident agent of 4DMH 4D ENERGY is not currently

and at no time relevant to this matter been licensed as a mortgage broker in Nevada under the Statute

f On December 9 2015 following conclusion of a previous investigation conducted by

the Division concerning 4DMHS and WAGNERS alleged private-money lending and seller carry-

back financing lending activities concerning the purchase of properties owned by 4DMH andor

WAGNER as secured by Nevada real property the Divisions then-existing Chief ComplianceAudit

Investigator issued a Letter of Caution (LOC) to 4DMH and WAGNER which constituted neither

formal discipline against 4DMH or against WAGNER individually The LOC explained that while the

Division found that their unlicensed private-money lending activities violated NRS 6458900 as well as

the corresponding prohibition concerning mortgage banking activities (NRS 645E900) based upon the

Divisions understanding that 4DMH and WAGNER had chosen to use a specified Nevada-licensed

broker to facilitate their lending activities in the future the Division had determined to close the matter

At the same time however instructing 4DMH and WAGNER to become familiar with the provisions of

the applicable law prior to engaging in the making or arranging of mortgage loans secured by Nevada

real property the LOC stressed that if the Division learned that they continued to offer or provide

financing for Nevada residential real property in the absence of proper licensure or exemption from

such requirement the Division may reopen the matter and pursue formal administrative disciplinary

proceedings

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g Following issuance of the Divisions LOC as admitted by WAGNER during the

course of the Divisions investigation subject of the instant matter 4DMH and WAGNER continued to

engage in mortgage lending activities as furthered by a business model reflecting WAGNERS purchase

of distressed residential properties under the name of 4DMH rehabilitation of the homes for sale and

performance of the services of a private-money lender in funding the acquisition of such properties by

the respective borrowers in seller-carryback transactions In particular as documented by the Division

even where the mortgage transactions related to these properties may have been in various stages of the

loan process prior to issuance of the LOC the purchase of at least nine secured residential properties in

Nevada were funded by 4DMH and WAGNER after their receipt of the LOC From approximately

December 9 2015 through at least May 4 2017 4DMH and WAGNER brokered and funded the sale of

homes situated at the following locations E Carey Avenue Las Vegas Quintearo Street Las Vegas

Daley Street North Las Vegas Mabel Road Las Vegas Cervantes Street Las Vegas Cunningham

Drive Las Vegas Plumflower Lane Las Vegas Kolanut Lane Las Vegas and Jackson Avenue Las

Vegas The Division learned that 4DMH and WAGNER subsequently assigned or sold the promissory

notes which secured the trust deeds for the properties situated on Daley Street and Kolanut Lane to

other individuals or entities

h Upon information and belief the long-term (30-year) high-interest (12-percent) rate

for the $6000000 loan financed in the 2016 seller-carryback transaction related to the Daley street

property (the deed of trust securing that loan specifically identifying 4DMH as a beneficiary whose

address is 6360 McLeod Drive 15 Las Vegas Nevada 89120) is typical of the terms of the

residential-mortgage loans brokered by and extended to various borrowers by 4DMH and WAGNER

1 On or about March 22 2018 WAGNER informed Division ComplianceAudit

Investigator DM that while he had approached the owner of the Nevada-licensed brokerage which

during the course of the Divisions prior investigation of 4DMH and WAGNER he had specifically

identified as the broker he selected to utilize when conducting all future mortgage-lending activities

explained that because that brokers fees were too high he had determined to shut down the business

He represented that he had completed only a handful of loans that were still in the funding process

following issuance of the LOC

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person in an attempt to obtain a loan which will be secured by a lien on real

property

(b) Holds himself or herself out for hire to serve as an agent for any

person who has money to lend if the loan is or will be secured by a lien on real

property

(c) Holds himself or herself out as being able to make loans secured by

liens on real property

( d) Holds himself or herselfout as being able to buy or sell notes secured

by liens on real property or

(e) Offers for sale m this State any security which is exempt from

registration under state or federal law and purports to make investments in

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promissory notes secured by liens on real property

[Emphasis added]

3 The Divisions investigation specifically found the following

a 4DMH is an active domestic corporation that holds a Nevada business license (Entity

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No Cl9275-2003) Upon information and belief 4DMH has been conducting business in Nevada since

on or about August 8 2003 4DMH is not currently and has at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

b Based upon information and belief 4DMH conducts its business from 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 andor 6360 McLeod Drive Suite 15 Las Vegas

Nevada 89120

c As reflected in the state-business licensing records of the Nevada Secretary of State

(NSOS) WAGNER serves as the sole officer of 4DMH for which he also acts as its registered agent

at the office located on 6290 McLeod Drive Suite 110 Las Vegas Nevada WAGNER is not

currently and has at no time relevant to this matter been licensed as a mortgage broker or mortgage

agent in Nevada under the Statute

d 4D COMPANIES is an active domestic limited-liability company that holds a Nevada

business license (Entity No E0472122010-0) The NSOS identifies both the managing officer and

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resident agent of that company as 4D ENERGY LLC located at 6290 McLeod Drive Suite 110 Las

Vegas Nevada 89120 the same address from which WAGNER serves as the sole officer and resident

agent of 4DMH 4D COMPANIES LLC is not currently and at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

e 4D ENERGY LLC (4D ENERGY) is an active domestic limited-liability company

that holds a Nevada business license (Entity No E0457762010-7) The NSOS identifies both the

managing officer and resident agent of that company as 4D COMPANIES located at 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 the same address for which 4D ENERGY is represented

to serve as the managing officer and resident agent for 4D COMPANIES and the same address from

which WAGNER serves as the sole officer and resident agent of 4DMH 4D ENERGY is not currently

and at no time relevant to this matter been licensed as a mortgage broker in Nevada under the Statute

f On December 9 2015 following conclusion of a previous investigation conducted by

the Division concerning 4DMHS and WAGNERS alleged private-money lending and seller carry-

back financing lending activities concerning the purchase of properties owned by 4DMH andor

WAGNER as secured by Nevada real property the Divisions then-existing Chief ComplianceAudit

Investigator issued a Letter of Caution (LOC) to 4DMH and WAGNER which constituted neither

formal discipline against 4DMH or against WAGNER individually The LOC explained that while the

Division found that their unlicensed private-money lending activities violated NRS 6458900 as well as

the corresponding prohibition concerning mortgage banking activities (NRS 645E900) based upon the

Divisions understanding that 4DMH and WAGNER had chosen to use a specified Nevada-licensed

broker to facilitate their lending activities in the future the Division had determined to close the matter

At the same time however instructing 4DMH and WAGNER to become familiar with the provisions of

the applicable law prior to engaging in the making or arranging of mortgage loans secured by Nevada

real property the LOC stressed that if the Division learned that they continued to offer or provide

financing for Nevada residential real property in the absence of proper licensure or exemption from

such requirement the Division may reopen the matter and pursue formal administrative disciplinary

proceedings

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g Following issuance of the Divisions LOC as admitted by WAGNER during the

course of the Divisions investigation subject of the instant matter 4DMH and WAGNER continued to

engage in mortgage lending activities as furthered by a business model reflecting WAGNERS purchase

of distressed residential properties under the name of 4DMH rehabilitation of the homes for sale and

performance of the services of a private-money lender in funding the acquisition of such properties by

the respective borrowers in seller-carryback transactions In particular as documented by the Division

even where the mortgage transactions related to these properties may have been in various stages of the

loan process prior to issuance of the LOC the purchase of at least nine secured residential properties in

Nevada were funded by 4DMH and WAGNER after their receipt of the LOC From approximately

December 9 2015 through at least May 4 2017 4DMH and WAGNER brokered and funded the sale of

homes situated at the following locations E Carey Avenue Las Vegas Quintearo Street Las Vegas

Daley Street North Las Vegas Mabel Road Las Vegas Cervantes Street Las Vegas Cunningham

Drive Las Vegas Plumflower Lane Las Vegas Kolanut Lane Las Vegas and Jackson Avenue Las

Vegas The Division learned that 4DMH and WAGNER subsequently assigned or sold the promissory

notes which secured the trust deeds for the properties situated on Daley Street and Kolanut Lane to

other individuals or entities

h Upon information and belief the long-term (30-year) high-interest (12-percent) rate

for the $6000000 loan financed in the 2016 seller-carryback transaction related to the Daley street

property (the deed of trust securing that loan specifically identifying 4DMH as a beneficiary whose

address is 6360 McLeod Drive 15 Las Vegas Nevada 89120) is typical of the terms of the

residential-mortgage loans brokered by and extended to various borrowers by 4DMH and WAGNER

1 On or about March 22 2018 WAGNER informed Division ComplianceAudit

Investigator DM that while he had approached the owner of the Nevada-licensed brokerage which

during the course of the Divisions prior investigation of 4DMH and WAGNER he had specifically

identified as the broker he selected to utilize when conducting all future mortgage-lending activities

explained that because that brokers fees were too high he had determined to shut down the business

He represented that he had completed only a handful of loans that were still in the funding process

following issuance of the LOC

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resident agent of that company as 4D ENERGY LLC located at 6290 McLeod Drive Suite 110 Las

Vegas Nevada 89120 the same address from which WAGNER serves as the sole officer and resident

agent of 4DMH 4D COMPANIES LLC is not currently and at no time relevant to this matter been

licensed as a mortgage broker in Nevada under the Statute

e 4D ENERGY LLC (4D ENERGY) is an active domestic limited-liability company

that holds a Nevada business license (Entity No E0457762010-7) The NSOS identifies both the

managing officer and resident agent of that company as 4D COMPANIES located at 6290 McLeod

Drive Suite 110 Las Vegas Nevada 89120 the same address for which 4D ENERGY is represented

to serve as the managing officer and resident agent for 4D COMPANIES and the same address from

which WAGNER serves as the sole officer and resident agent of 4DMH 4D ENERGY is not currently

and at no time relevant to this matter been licensed as a mortgage broker in Nevada under the Statute

f On December 9 2015 following conclusion of a previous investigation conducted by

the Division concerning 4DMHS and WAGNERS alleged private-money lending and seller carry-

back financing lending activities concerning the purchase of properties owned by 4DMH andor

WAGNER as secured by Nevada real property the Divisions then-existing Chief ComplianceAudit

Investigator issued a Letter of Caution (LOC) to 4DMH and WAGNER which constituted neither

formal discipline against 4DMH or against WAGNER individually The LOC explained that while the

Division found that their unlicensed private-money lending activities violated NRS 6458900 as well as

the corresponding prohibition concerning mortgage banking activities (NRS 645E900) based upon the

Divisions understanding that 4DMH and WAGNER had chosen to use a specified Nevada-licensed

broker to facilitate their lending activities in the future the Division had determined to close the matter

At the same time however instructing 4DMH and WAGNER to become familiar with the provisions of

the applicable law prior to engaging in the making or arranging of mortgage loans secured by Nevada

real property the LOC stressed that if the Division learned that they continued to offer or provide

financing for Nevada residential real property in the absence of proper licensure or exemption from

such requirement the Division may reopen the matter and pursue formal administrative disciplinary

proceedings

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g Following issuance of the Divisions LOC as admitted by WAGNER during the

course of the Divisions investigation subject of the instant matter 4DMH and WAGNER continued to

engage in mortgage lending activities as furthered by a business model reflecting WAGNERS purchase

of distressed residential properties under the name of 4DMH rehabilitation of the homes for sale and

performance of the services of a private-money lender in funding the acquisition of such properties by

the respective borrowers in seller-carryback transactions In particular as documented by the Division

even where the mortgage transactions related to these properties may have been in various stages of the

loan process prior to issuance of the LOC the purchase of at least nine secured residential properties in

Nevada were funded by 4DMH and WAGNER after their receipt of the LOC From approximately

December 9 2015 through at least May 4 2017 4DMH and WAGNER brokered and funded the sale of

homes situated at the following locations E Carey Avenue Las Vegas Quintearo Street Las Vegas

Daley Street North Las Vegas Mabel Road Las Vegas Cervantes Street Las Vegas Cunningham

Drive Las Vegas Plumflower Lane Las Vegas Kolanut Lane Las Vegas and Jackson Avenue Las

Vegas The Division learned that 4DMH and WAGNER subsequently assigned or sold the promissory

notes which secured the trust deeds for the properties situated on Daley Street and Kolanut Lane to

other individuals or entities

h Upon information and belief the long-term (30-year) high-interest (12-percent) rate

for the $6000000 loan financed in the 2016 seller-carryback transaction related to the Daley street

property (the deed of trust securing that loan specifically identifying 4DMH as a beneficiary whose

address is 6360 McLeod Drive 15 Las Vegas Nevada 89120) is typical of the terms of the

residential-mortgage loans brokered by and extended to various borrowers by 4DMH and WAGNER

1 On or about March 22 2018 WAGNER informed Division ComplianceAudit

Investigator DM that while he had approached the owner of the Nevada-licensed brokerage which

during the course of the Divisions prior investigation of 4DMH and WAGNER he had specifically

identified as the broker he selected to utilize when conducting all future mortgage-lending activities

explained that because that brokers fees were too high he had determined to shut down the business

He represented that he had completed only a handful of loans that were still in the funding process

following issuance of the LOC

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g Following issuance of the Divisions LOC as admitted by WAGNER during the

course of the Divisions investigation subject of the instant matter 4DMH and WAGNER continued to

engage in mortgage lending activities as furthered by a business model reflecting WAGNERS purchase

of distressed residential properties under the name of 4DMH rehabilitation of the homes for sale and

performance of the services of a private-money lender in funding the acquisition of such properties by

the respective borrowers in seller-carryback transactions In particular as documented by the Division

even where the mortgage transactions related to these properties may have been in various stages of the

loan process prior to issuance of the LOC the purchase of at least nine secured residential properties in

Nevada were funded by 4DMH and WAGNER after their receipt of the LOC From approximately

December 9 2015 through at least May 4 2017 4DMH and WAGNER brokered and funded the sale of

homes situated at the following locations E Carey Avenue Las Vegas Quintearo Street Las Vegas

Daley Street North Las Vegas Mabel Road Las Vegas Cervantes Street Las Vegas Cunningham

Drive Las Vegas Plumflower Lane Las Vegas Kolanut Lane Las Vegas and Jackson Avenue Las

Vegas The Division learned that 4DMH and WAGNER subsequently assigned or sold the promissory

notes which secured the trust deeds for the properties situated on Daley Street and Kolanut Lane to

other individuals or entities

h Upon information and belief the long-term (30-year) high-interest (12-percent) rate

for the $6000000 loan financed in the 2016 seller-carryback transaction related to the Daley street

property (the deed of trust securing that loan specifically identifying 4DMH as a beneficiary whose

address is 6360 McLeod Drive 15 Las Vegas Nevada 89120) is typical of the terms of the

residential-mortgage loans brokered by and extended to various borrowers by 4DMH and WAGNER

1 On or about March 22 2018 WAGNER informed Division ComplianceAudit

Investigator DM that while he had approached the owner of the Nevada-licensed brokerage which

during the course of the Divisions prior investigation of 4DMH and WAGNER he had specifically

identified as the broker he selected to utilize when conducting all future mortgage-lending activities

explained that because that brokers fees were too high he had determined to shut down the business

He represented that he had completed only a handful of loans that were still in the funding process

following issuance of the LOC

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4 The Division additionally discovered that through the websites www4dcompaniescom

and www4dcasascom RESPONDENTS advertise and promote their private-money lending services

specifically targeting members of the Las Vegas Hispanic community in efforts to facilitate the funding

for purchase of residential real estate in Nevada As translated from the Spanish language as touted in

www4dcasascom and providing a telephone number for use to obtain more information

RESPONDENTS urge consumers to stop wasting their money on rent and to buy your house with

only a 10 down payment or engagement with no credit required As again translated from Spanish

the website proclaims You choose us We buy You are the owner Look Now Similarly on

www4dcompaniescom RESPONDENTS encourage persons to not waste their money on rent when

they could rent with the option to buy not when you could own your own home

5 By holding themselves out as being able to make loans secured by liens on real property

and by providing the source of such funding as described above with respect to at least nine residential

properties in Nevada (as well as thereafter additionally selling or assigning the notes which secured the

liens on at least two of such properties) 4DMH and WAGNER have engaged in or carried on the

business of a mortgage broker in Nevada within the meaning of NRS 64580127 From at least

approximately December 9 2015 through at least May 4 2017 despite having represented to the

Division in late 2015 that they would utilize a specified Nevada-licensed broker to conduct all of their

future mortgage lending activities (that understanding explicitly set forth in the Divisions issued LOC)

as late as approximately March 22 2018 over three years later WAGNER admitted that he had not

utilized that broker (or any other broker for that matter) to arrange or fund the continued mortgageshy

lending transactions engaged in by 4DMH and WAGNER

6 Further as facilitated by RESPONDENTS utilization of the two aforementioned

websites to solicit the business of prospective Nevada borrowers in their attempts to obtain a loan for

the purchase of residential property RESPONDENTS within the meaning of mortgage broker as

defined by NRS 64580127 continue to directly or indirectly hold themselves out as private-money

lenders able to originate underwrite and fund all of such mortgage loans and transactions and able to

assist Nevada consumers in achieving purchase of their own homes

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7 RESPONDENTS engaged or continue to engage in activities and conduct which require

licensure as a mortgage broker under the Statute and are not exempt from licensure under the Statute

8 Any finding of fact that may be deemed a conclusion oflaw shall be so construed

Conclusions of Law

9 Unless otherwise exempt it is a violation of NRS 6458900 for any person to offer or

provide any of the services of a mortgage broker or mortgage agent to engage in carry on or otherwise

hold himself or herself out as engaging in or carrying on the business of a mortgage broker or mortgage

agent without first obtaining the applicable license issued pursuant to the Statute

10 By providing or offering to provide the services of a mortgage broker without having

first obtained the applicable license under the Statute and not being exempt from the licensure

requirements RESPONDENTS are in violation ofNRS 6458900

11 NAC 6458515 vests in the Commissioner the authority to order a person engaging in

activity in violation of the Act to immediately cease and desist from engaging in that activity

12 NRS 645B690(l)(a) requires the Commissioner to impose an administrative fine of not

more than $5000000 on a person who offers or provides any of the services of a mortgage broker or

otherwise engages in carries on or holds himself or herself out as engaging in or carrying on the

business of a mortgage broker and at the time the person was required to have a license pursuant to the

Statute and the person did not have such a license

13 Any conclusion of law that may be deemed a finding of fact shall be so construed

Order

The Commissioner having formed the opinion based upon the foregoing that RESPONDENTS

have been or are engaged in unlicensed activities in violation of the Statute and concluded and

determined that RESPONDENTS should be ordered to 1) cease and desist from engaging in any

activity requiring licensure under NRS 645B 2) pay an administrative fine and 3) pay the Divisions

investigative costs

NOW THEREFORE IT IS ORDERED that 4D MANAGEMENT HOLDINGS INC 4D

COMPANIES LLC and JOSEPH WAGNER shall immediately CEASE AND DESIST from

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advertising engaging in or otherwise carrying on or holding themselves out as engaging in or carrying

on any activities that require licensure as a mortgage broker under the Statute

IT IS FURTHER ORDERED that an ADMINISTRATIVE FINE in the amount of $4500000

shall be and hereby is imposed jointly and severally upon 4D MANAGEMENT HOLDINGS INC

4D COMPANIES LLC and JOSEPH WAGNER in accordance with NRS 645B690(l)(a) The

ADMINISTRATIVE FINE shall be due and payable on the 30th day following the effective date of this

Order and shall be tendered to the Division in accordance with the attached wire transfer instructions

IT IS FURTHER ORDERED that RESPONDENTS shall be and hereby are assessed jointly and

severally on 4D MANAGEMENT HOLDINGS INC 4D COMPANIES LLC and JOSEPH

WAGNER the Divisions INVESTIGATIVE COSTS in the amount of $385500 in accordance with

NRS 622400 The INVESTIGATIVE COSTS shall be due and payable on the 30th day following the

effective date of this Order and shall be tendered to the Division with the ADMINISTRATIVE FINE in

accordance with the attached wire transfer instructions

IT IS FURTHER ORDERED that an administrative hearing shall be scheduled in this matter

only if RESPONDENT timely requests an administrative hearing in accordance with the instructions set

forth in Section II of this Order entitled Notice of Opportunity for Administrative Hearing If no

administrative hearing is requested within 30 calendar days of the effective date of this ORDER

RESPONDENTS shall be deemed to have waived and relinquished the right to an administrative

hearing in this matter and a FINAL ORDER shall be issued in this matter

IT IS FURTHER ORDERED that this Order shall be and is effective and enforceable on the

date that it is issued and entered as shown in the caption hereof

IT IS FURTHER ORDERED that this Order shall remain effective and enforceable until

terminated modified set aside or suspended in writing by the Commissioner

Ill

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IT IS FURTHER ORDERED that the Commissioner specifically retains jurisdiction over the

matters contained herein and has the authority to issue such further order(s) as the Commissioner shall

deem just necessary and appropriate to enforce the Act and protect the public

IT IS SO ORDERED

DIVISION OF MORTGAGE LENDING

By

II

NOTICE OF OPPORTUNITY FOR ADMINISTRATIVE HEARING

The following provisions of the Nevada Revised Statutes and Nevada Administrative Code are

relevant to the right to hearing in this matter

NAC 6458515 Orders to cease and desist from certain activities

1 If a person engages in an activity in violation of the provisions of this

chapter or chapter 645B of NRS the Commissioner may issue an order to the

person directing the person to cease and desist from engaging in the activity

2 The order to cease and desist must be in writing and must state that in the

opinion of the Commissioner the person has engaged in an activity

(a) For which the person has not received a license or certificate of exemption

as required by chapter 645B ofNRS or

(b) In a manner that violates the provisions of this chapter or chapter 645B of

NRS

3 A person who receives an order to cease and desist pursuant to this section

shall not engage in any activity governed by chapter 645B of NRS after receiving

the order unless the order is suspended or rescinded

4 Not later than 30 calendar days after receiving an order pursuant to this

section the person who receives the order may file a verified petition with the

Commissioner to request a hearing Upon receipt of the verified petition the

Commissioner may for good cause shown suspend the order pending the hearing

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The Commissioner will hold the hearing on a date not later than 30 calendar days

after the date the petition is filed unless the Commissioner and the person agree to

another date The order to cease and desist is rescinded if the Commissioner fails

to

(a) Hold a hearing

(1) Not later than 30 calendar days after the date the petition is filed or

(2) On a date agreed to by the Commissioner and the person or

(b) Render a written decision within 45 days after the date the hearing is

concluded

5 The decision of the Commissioner after a hearing is a final decision of the

Division for the purposes ofjudicial review

NRS 6458750 Duty of Commissioner to provide written notice of

disciplinary action or denial of license right to administrative hearing entry

of final order appeals

1 If the Commissioner enters an order taking any disciplinary action against

a person or denying a persons application for a license the Commissioner shall

cause a written notice of the order to be served personally or sent by certified mail

or telegram to the person

2 Unless a hearing has already been conducted concerning the matter the

person upon application is entitled to a hearing If the person does not make such

an application within 20 days after the date of the initial order the Commissioner

shall enter a final order concerning the matter

3 A person may appeal a final order of the Commissioner in accordance with

the provisions of chapter 2338 ofNRS that apply to a contested case

NRS 2338121 Notice of hearing in contested case contents of notice

representation by counsel opportunity to respond and present evidence and

argument fees and mileage for witnesses informal disposition voluntary

surrender of license in contested case deemed disciplinary action contents of

record transcriptions findings of fact

1 In a contested case all parties must be afforded an opportunity for hearing

after reasonable notice

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2 The notice must include

(a) A statement of the time place and nature of the hearing

(b) A statement of the legal authority and jurisdiction under which the hearing

is to be held

(c) A reference to the particular sections of the statutes and regulations

involved

(d) A short and plain statement of the matters asserted If the agency or other

party is unable to state the matters in detail at the time the notice is served the

initial notice may be limited to a statement of the issues involved Thereafter

upon application a more definite and detailed statement must be furnished

3 Any party is entitled to be represented by counsel

4 Opportunity must be afforded all parties to respond and present evidence

and argument on all issues involved An agency may by regulation authorize the

payment of fees and reimbursement for mileage to witnesses in the same amounts

and under the same conditions as for witnesses in the courts of this state

5 Unless precluded by law informal disposition may be made of any contested

case by stipulation agreed settlement consent order or default If an informal

disposition is made the parties may waive the requirement for findings of fact and

conclusions of law

6 The voluntary surrender of a license in a contested case shall be deemed to

constitute disciplinary action against the licensee

7 The record in a contested case must include

(a) All pleadings motions and intermediate rulings

(b) Evidence received or considered

(c) A statement of matters officially noticed

(d) Questions and offers of proof and objections and rulings thereon

(e) Proposed findings and exceptions

(f) Any decision opinion or report by the hearing officer presiding at the

hearing

8 Oral proceedings or any part thereof must be transcribed on request of any

party The party making the request shall pay all the costs for the transcription

9 Findings of fact must be based exclusively on a preponderance of the

evidence and on matters officially noticed

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NRS 233B032 Contested case defined

Contested case means a proceeding including but not restricted to rate making

and licensing in which the legal rights duties or privileges of a party are required

by law to be determined by an agency after an opportunity for hearing or in which

an administrative penalty may be imposed

If you wish to exercise your right to an opportunity for an administrative hearing within

30 calendar days after receiving this Order you must file a verified petition with the

Commissioner to request a hearing

The verified petition requesting a hearing must be delivered to

Division of Mortgage Lending

Attn Susan Slack

3300 West Sahara Avenue Suite 285

Las Vegas Nevada 89102

If you fail to timely file a verified petition to request a hearing your right to a hearing to

contest this matter will be deemed waived and relinquished

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The Commissioner will hold the hearing on a date not later than 30 calendar days

after the date the petition is filed unless the Commissioner and the person agree to

another date The order to cease and desist is rescinded if the Commissioner fails

to

(a) Hold a hearing

(1) Not later than 30 calendar days after the date the petition is filed or

(2) On a date agreed to by the Commissioner and the person or

(b) Render a written decision within 45 days after the date the hearing is

concluded

5 The decision of the Commissioner after a hearing is a final decision of the

Division for the purposes ofjudicial review

NRS 6458750 Duty of Commissioner to provide written notice of

disciplinary action or denial of license right to administrative hearing entry

of final order appeals

1 If the Commissioner enters an order taking any disciplinary action against

a person or denying a persons application for a license the Commissioner shall

cause a written notice of the order to be served personally or sent by certified mail

or telegram to the person

2 Unless a hearing has already been conducted concerning the matter the

person upon application is entitled to a hearing If the person does not make such

an application within 20 days after the date of the initial order the Commissioner

shall enter a final order concerning the matter

3 A person may appeal a final order of the Commissioner in accordance with

the provisions of chapter 2338 ofNRS that apply to a contested case

NRS 2338121 Notice of hearing in contested case contents of notice

representation by counsel opportunity to respond and present evidence and

argument fees and mileage for witnesses informal disposition voluntary

surrender of license in contested case deemed disciplinary action contents of

record transcriptions findings of fact

1 In a contested case all parties must be afforded an opportunity for hearing

after reasonable notice

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2 The notice must include

(a) A statement of the time place and nature of the hearing

(b) A statement of the legal authority and jurisdiction under which the hearing

is to be held

(c) A reference to the particular sections of the statutes and regulations

involved

(d) A short and plain statement of the matters asserted If the agency or other

party is unable to state the matters in detail at the time the notice is served the

initial notice may be limited to a statement of the issues involved Thereafter

upon application a more definite and detailed statement must be furnished

3 Any party is entitled to be represented by counsel

4 Opportunity must be afforded all parties to respond and present evidence

and argument on all issues involved An agency may by regulation authorize the

payment of fees and reimbursement for mileage to witnesses in the same amounts

and under the same conditions as for witnesses in the courts of this state

5 Unless precluded by law informal disposition may be made of any contested

case by stipulation agreed settlement consent order or default If an informal

disposition is made the parties may waive the requirement for findings of fact and

conclusions of law

6 The voluntary surrender of a license in a contested case shall be deemed to

constitute disciplinary action against the licensee

7 The record in a contested case must include

(a) All pleadings motions and intermediate rulings

(b) Evidence received or considered

(c) A statement of matters officially noticed

(d) Questions and offers of proof and objections and rulings thereon

(e) Proposed findings and exceptions

(f) Any decision opinion or report by the hearing officer presiding at the

hearing

8 Oral proceedings or any part thereof must be transcribed on request of any

party The party making the request shall pay all the costs for the transcription

9 Findings of fact must be based exclusively on a preponderance of the

evidence and on matters officially noticed

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NRS 233B032 Contested case defined

Contested case means a proceeding including but not restricted to rate making

and licensing in which the legal rights duties or privileges of a party are required

by law to be determined by an agency after an opportunity for hearing or in which

an administrative penalty may be imposed

If you wish to exercise your right to an opportunity for an administrative hearing within

30 calendar days after receiving this Order you must file a verified petition with the

Commissioner to request a hearing

The verified petition requesting a hearing must be delivered to

Division of Mortgage Lending

Attn Susan Slack

3300 West Sahara Avenue Suite 285

Las Vegas Nevada 89102

If you fail to timely file a verified petition to request a hearing your right to a hearing to

contest this matter will be deemed waived and relinquished

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2 The notice must include

(a) A statement of the time place and nature of the hearing

(b) A statement of the legal authority and jurisdiction under which the hearing

is to be held

(c) A reference to the particular sections of the statutes and regulations

involved

(d) A short and plain statement of the matters asserted If the agency or other

party is unable to state the matters in detail at the time the notice is served the

initial notice may be limited to a statement of the issues involved Thereafter

upon application a more definite and detailed statement must be furnished

3 Any party is entitled to be represented by counsel

4 Opportunity must be afforded all parties to respond and present evidence

and argument on all issues involved An agency may by regulation authorize the

payment of fees and reimbursement for mileage to witnesses in the same amounts

and under the same conditions as for witnesses in the courts of this state

5 Unless precluded by law informal disposition may be made of any contested

case by stipulation agreed settlement consent order or default If an informal

disposition is made the parties may waive the requirement for findings of fact and

conclusions of law

6 The voluntary surrender of a license in a contested case shall be deemed to

constitute disciplinary action against the licensee

7 The record in a contested case must include

(a) All pleadings motions and intermediate rulings

(b) Evidence received or considered

(c) A statement of matters officially noticed

(d) Questions and offers of proof and objections and rulings thereon

(e) Proposed findings and exceptions

(f) Any decision opinion or report by the hearing officer presiding at the

hearing

8 Oral proceedings or any part thereof must be transcribed on request of any

party The party making the request shall pay all the costs for the transcription

9 Findings of fact must be based exclusively on a preponderance of the

evidence and on matters officially noticed

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NRS 233B032 Contested case defined

Contested case means a proceeding including but not restricted to rate making

and licensing in which the legal rights duties or privileges of a party are required

by law to be determined by an agency after an opportunity for hearing or in which

an administrative penalty may be imposed

If you wish to exercise your right to an opportunity for an administrative hearing within

30 calendar days after receiving this Order you must file a verified petition with the

Commissioner to request a hearing

The verified petition requesting a hearing must be delivered to

Division of Mortgage Lending

Attn Susan Slack

3300 West Sahara Avenue Suite 285

Las Vegas Nevada 89102

If you fail to timely file a verified petition to request a hearing your right to a hearing to

contest this matter will be deemed waived and relinquished

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NRS 233B032 Contested case defined

Contested case means a proceeding including but not restricted to rate making

and licensing in which the legal rights duties or privileges of a party are required

by law to be determined by an agency after an opportunity for hearing or in which

an administrative penalty may be imposed

If you wish to exercise your right to an opportunity for an administrative hearing within

30 calendar days after receiving this Order you must file a verified petition with the

Commissioner to request a hearing

The verified petition requesting a hearing must be delivered to

Division of Mortgage Lending

Attn Susan Slack

3300 West Sahara Avenue Suite 285

Las Vegas Nevada 89102

If you fail to timely file a verified petition to request a hearing your right to a hearing to

contest this matter will be deemed waived and relinquished

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